Does trade liberalization enhance income growth and equity in Zimbabwe?: the role of complimentary policies

Using an agriculture-focused CGE model for Zimbabwe with 1991 as base period, this paper examines quantitatively the income and equity effects of trade liberalization in isolation and in conjunction with potentially complementary changes in fiscal and land policies. Trade policy reform alone (disman...

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Autores principales: Bautista, Romeo M., Lofgren, Hans, Thomas, Marcelle
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 1998
Materias:
Acceso en línea:https://hdl.handle.net/10568/161214
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author Bautista, Romeo M.
Lofgren, Hans
Thomas, Marcelle
author_browse Bautista, Romeo M.
Lofgren, Hans
Thomas, Marcelle
author_facet Bautista, Romeo M.
Lofgren, Hans
Thomas, Marcelle
author_sort Bautista, Romeo M.
collection Repository of Agricultural Research Outputs (CGSpace)
description Using an agriculture-focused CGE model for Zimbabwe with 1991 as base period, this paper examines quantitatively the income and equity effects of trade liberalization in isolation and in conjunction with potentially complementary changes in fiscal and land policies. Trade policy reform alone (dismantling of import and foreign exchange controls, and reduction of import taxes to a low uniform rate) is shown to increase aggregate disposable household income significantly. However, the least income gain accrues to smallholder farm households, which account for about four-fifths of the poor in Zimbabwe, so the equity impact is unfavorable. Concurrent implementation with specific changes in government expenditure and tax policies and two alternative stylized land redistribution schemes yields differing outcomes in terms of aggregate household income growth and its distribution.
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spelling CGSpace1612142025-11-06T06:33:52Z Does trade liberalization enhance income growth and equity in Zimbabwe?: the role of complimentary policies Bautista, Romeo M. Lofgren, Hans Thomas, Marcelle trade liberalization econometrics economic policies income distribution fiscal policies Using an agriculture-focused CGE model for Zimbabwe with 1991 as base period, this paper examines quantitatively the income and equity effects of trade liberalization in isolation and in conjunction with potentially complementary changes in fiscal and land policies. Trade policy reform alone (dismantling of import and foreign exchange controls, and reduction of import taxes to a low uniform rate) is shown to increase aggregate disposable household income significantly. However, the least income gain accrues to smallholder farm households, which account for about four-fifths of the poor in Zimbabwe, so the equity impact is unfavorable. Concurrent implementation with specific changes in government expenditure and tax policies and two alternative stylized land redistribution schemes yields differing outcomes in terms of aggregate household income growth and its distribution. 1998 2024-11-21T09:54:12Z 2024-11-21T09:54:12Z Working Paper https://hdl.handle.net/10568/161214 en Open Access application/pdf International Food Policy Research Institute Bautista, Romeo M.; Lofgren, Hans; Thomas, Marcelle. 1998. Does trade liberalization enhance income growth and equity in Zimbabwe?;the role of complimentary policies. TMD Discussion Paper 32. https://hdl.handle.net/10568/161214
spellingShingle trade liberalization
econometrics
economic policies
income distribution
fiscal policies
Bautista, Romeo M.
Lofgren, Hans
Thomas, Marcelle
Does trade liberalization enhance income growth and equity in Zimbabwe?: the role of complimentary policies
title Does trade liberalization enhance income growth and equity in Zimbabwe?: the role of complimentary policies
title_full Does trade liberalization enhance income growth and equity in Zimbabwe?: the role of complimentary policies
title_fullStr Does trade liberalization enhance income growth and equity in Zimbabwe?: the role of complimentary policies
title_full_unstemmed Does trade liberalization enhance income growth and equity in Zimbabwe?: the role of complimentary policies
title_short Does trade liberalization enhance income growth and equity in Zimbabwe?: the role of complimentary policies
title_sort does trade liberalization enhance income growth and equity in zimbabwe the role of complimentary policies
topic trade liberalization
econometrics
economic policies
income distribution
fiscal policies
url https://hdl.handle.net/10568/161214
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AT thomasmarcelle doestradeliberalizationenhanceincomegrowthandequityinzimbabwetheroleofcomplimentarypolicies